The pace of growth in the Principality has slowed since 2013 (from +9.7% in 2013 to +3.4% in 2016).

In 2016, all growth stemmed from the performance of the construction industry (property development) and other service activities, which generated a substantial gross operating surplus.

In 2017, these two sectors faltered and even experienced a slight decline. Their performance has had a direct impact on the Principality’s total GDP.

Three sectors produce nearly half of the wealth generated in the Principality:

Financial and insurance activities (17.8%)

Scientific and technical activities, administrative and support services (17.0%)

Real estate activities (10.0%), which reached the top three as a result of the decline in the construction sector

These three top sectors are making gains, with each having achieved their highest ever levels. The GDP of financial and insurance activities rose by 7.7%, exceeding EUR 1 billion for the first time.

Despite the decline in GDP, employment continued to increase during 2017, in both the public and private sectors, with an additional 1,853 employees (+3.5%) recorded in December. The amount of wages paid rose by 4.1%, representing more than half of GDP (50.8%). This corresponds to the share of annually created wealth which is redistributed in the form of salaries and social security contributions.

After four consecutive years of growth, the gross operating surplus generated by companies fell (-9.5% in nominal terms). Monegasque entrepreneurs appear to have put employment ahead of their margins.

Taxes paid on products increased 0.1% in nominal terms but fell by 0.6% in real terms (corrected for inflation), contributing 13.1% of wealth produced. VAT on property and transfer duties in particular declined, while other taxes rose.

The amount of subsidies increased substantially (+16.1%), primarily due to the creation of the Dependency Fund and money allocated to the energy transition.

GDP per capita was EUR 67,786, down 6.7% in real terms.

GDP "per capita" indicators

67,786

current euros

Source: Monaco Statistics

-6.7

%

Source: Monaco Statistics

GDP per employee, an indicator of productivity, also fell by 6.8% to EUR 104,603.